The Civic Issue
Phase 2 of the Second Avenue Subway will extend the Q train north from 96th St to 125th St in East Harlem, adding three new stations (106th, 116th, 125th). The $1.97B tunneling contract was awarded, but federal funding was frozen under the Trump administration over DEI policy disputes. The project would serve East Harlem — one of the most transit-underserved communities in Manhattan — but faces multi-year delays and cost uncertainty.
Headline Spending
$328M
identifiable in budget
Budget Lines (Adopted)
$658.4M
2 lines
Budget Lines
| Line | Adopted | Spent |
|---|---|---|
Transit Authority capital spending (all depts) 400-998-169 + others | — | $328.1M |
TA REDUCED FARE/ELDERLY Miscellaneous - OTPS | $658.4M | $676.5M |
Total Identifiable Spending
$328M in city capital payments to MTA (Transit Authority agency, not earmarked for Second Avenue Subway); project cost is $6-8B in MTA capital plan
What the Data Shows
The city's $328M Transit Authority capital spending is its only financial connection to Second Avenue Subway — a general capital contribution to MTA with no project-level attribution. The MTA receives these funds alongside state contributions, federal grants, and bond proceeds. There are zero budget lines, zero spending records, and zero contracts in NYC Checkbook specifically referencing the Second Avenue Subway. The entire project is outside the city's direct financial purview.
What the Data Misses
Second Avenue Subway Phase 2 is estimated at $6-8B total. It is funded through the MTA's 2020-2024 and 2025-2029 capital plans, which rely on: (1) $3.4B in expected federal Capital Investment Grants (currently frozen), (2) state appropriations, (3) MTA bonds including congestion-pricing-backed bonds, and (4) city capital contributions. Phase 1 (63rd-96th St, 3 stations) cost $4.45B and opened in 2017 — making it one of the most expensive subway projects per mile in world history. The city's capital contribution is real but undifferentiated across all MTA projects.
Key Context
The Dragados/Halmar tunneling contract ($1.97B) was awarded in 2024 for the tunnel boring between 96th and 125th Streets. Federal funding through the FTA Capital Investment Grant program was expected to cover ~40% of costs but was frozen by the Trump administration in early 2025, citing the MTA's DEI policies. Governor Hochul has stated the project will proceed regardless. East Harlem's 125th St station would be a major transfer point connecting the Q to the 4/5/6 and Metro-North. The project has been discussed since the 1920s — Phase 1 alone took 10 years to build. Phase 2 is currently projected for completion in the 2030s.